The Role of Central Government Scheme of MUDRA for the Development of MSMEs: A Study

Central government schemes are crucial in fostering the growth of Micro, Small, and Medium Enterprises (MSMEs), which contribute significantly to economic growth, job creation, and poverty alleviation in many countries. MSMEs operate in various sectors, such as manufacturing, services, and agribusiness, and contribute to a country’s global competitiveness. They account for over 80% of total industrial enterprises, produce over 8,000 value-added products, and employ an estimated 60 million people. They contribute to 45% to manufacturing output and 40% to exports, and are instrumental in promoting economic growth and poverty reduction. The Indian government has implemented initiatives such as the Micro, Small and Medium Enterprises Development Act, 2006, a Task Force, and a Planning Commission Working Group to address these challenges and fosters MSMEs’ growth.